CITIC Lyon: Maintaining AIA's (01299) target price of HK$110 rating as “outperforming the market”

The Zhitong Finance App learned that CITIC Lyon released a research report saying that due to fluctuations in the capital market, it lowered the AIA (01299) forecast, but maintained the target price of HK$110 and the “outperform the market” rating. AIA remains the bank's first choice in the Asian insurance sector. The bank appreciates AIA's ability to achieve long-term high-quality profit growth and shareholder returns. The bank believes that shifting from share buybacks to achieving endogenous growth through investment in new businesses will help enhance long-term shareholders' value.

The bank predicts that the compound annual dividend growth rate per share will reach 10% during the 2024-27 period, plus share repurchases of 1 billion to 1.1 billion US dollars in 2026/27, reflecting total shareholder returns of 3.4% and 3.7% respectively in 2026/27.